Investment Management

Dalewood Wealth Management will monitor and manage your investment with prudence and diligence. As a Registered Investment Advisor, we take our fiduciary responsibility seriously.

How will DWM invest my money?

Portfolio investment selection will be determined using the following parameters:

  1. Needs: We will start by evaluating what goals, obligations, and uncertainties exist for you in both the long and short term.

  2. Existing Investments: If you have an existing portfolio, we will evaluate the investments and only sell what needs to be sold to align with our approach. DWM does not believe management value comes from completely reinventing the wheel but from thoughtful modifications and rebalancing when appropriate.

  3. Asset Allocation Model Selection: Many of our clients will have their investment needs met using one of our curated model portfolios. These diversified portfolios have been selected to minimize costs and emphasize risk-adjusted returns.

  4. Customization: Model portfolios aren’t going to cut it for everyone. Sometimes investment needs are far more complicated than a simple ratio of stocks to bonds. The advantage of being a small RIA: flexibility.

    Some factors that might necessitate more in-depth investment selection:

    -Short-term liquidity needs

    -Income or Estate Tax considerations

    -Ethical or religious convictions

    -High risk aversion

    -Seeking alternatives to equity and fixed income

    -Preference for individual stocks and bonds over funds

Where will my money be held?

We are part of the Charles Schwab Advisor Services, meaning your investments will be “housed” with Charles Schwab. Charles Schwab is the largest brokerage firm in the world with over $9.57 trillion in assets under management (as of July 2024). If you have questions about the safety of your funds under Schwab, please visit their website for additional information.

By being granted discretionary authority over your Charles Schwab account, Dalewood Wealth Management will be able to monitor and manage your investments. We can also assist with distributions, money transfers, and tax withholding on distributions.

How much does investment management cost?

Dalewood Wealth Management is a fee-only Registered Investment Advisor. We are paid either a percentage fee based on assets under management or a predetermined fixed fee. Our goal is to keep fees as low as possible without compromising the quality of service. For a breakdown of our pricing, please see page 7 of our  ADV Part 2A.

In addition to the advisory fee charged by DWM, it’s crucial to note that nearly all funds (i.e. ETFs, Mutual Funds, etc.) come with a commission (or sales load) and/or an annual expense ratio. Many large brokerage firms like Charles Schwab have eliminated commissions for most online transactions; however, most funds still utilize a “built in” annual expense ratio. These expense ratios usually range from a few basis points* to one percent. Click here for more information on expense ratios.

If you still have questions about our pricing or the general pricing conventions in the investment industry, please contact us. To learn more about how management fees can impact your investment portfolio, please follow this link from the SEC’s Office of Investor Education and Advocacy.

Why do I need someone else to manage my investments?

You don’t necessarily. There are abundant online resources to help with common investment goals (e.g. retirement, education, etc.) In our view, however, the crux of whether or not to manage your own investments comes down to three primary considerations: (1) your foundational understanding of how investments work and when they’re used; (2) the ability/desire to thoroughly research investment strategies; and (3) the time and energy to monitor and rebalance your portfolio over time.

Consider the following questions when deciding whether you want to manage your own portfolio:

  • Does your portfolio emphasize absolute return or risk adjusted return? Given your goals and financial situation, which is more appropriate?

  • How does your portfolio balance companies of different market capitalization classes? For example, if your money is in a fund that tracks the S&P 500—which is almost entirely large-cap—how can you add more mid and small cap to the mix? How much should you add?

  • What is the average expense ratio of your portfolio and is the expense ratio of each holding appropriate?

  • Does your portfolio emphasize value or growth, and how will that impact your long-term goals?

  • For municipal bonds, have you calculated the after-tax return on other fixed-income investments?

  • If interest rates are expected to rise, how will you modify the average duration of your bond holdings?

What else do I get with that annual fee?

If you are an investment management client, you have the option to go through the full financial planning process at no additional cost. We will meet at least annually to review and update the plan. You will also be able to consult with a CFP®-practitioner whenever you need help with ad hoc financial matters (e.g. home purchase, debt payoff, Roth IRA conversion analysis, etc.)

Ready to learn more?